A Study On The Change Of Investment Style Of Open - End Funds In China 's Securities Market

Since the first open-end fund set up in China in2001, open-end fund industry has rapid developed in our country, and has become the mainstream of investment fund industry in our country. With the maturing of China’s stock market, the market’s environment is becoming complicated, when investors lack the investment research ability, investing in the open-end fund according to their risk is a good choice of asset allocation. The investment style of the fund is a standard for the investor to judge whether it is suitable for his needs.Usually fund contract will indicate the objectives and scope of investment in the book, at the same time, the fund’s name will also bring certain influence to investors, both of which constitute the named investment style of the fund. But a lot of fund’s investment style in the real operation has changed, this has brought certain difficulty to decision making for fund investors. Therefore, research how to correctly judge fund’s style, understand the causes of fund’s style change and the relationship between fund’s performance, has certain practical significance.First of all, this paper briefly introduces the development of China’s fund industry and the characteristics of open-end fund. Then this article enumerates the existing definition of fund investment style, and provides the definition of fund investment style, this paper introduces the fund’s style classification method which is commonly used now. Then, this paper analyzes the advantages and disadvantages of existing investment style judgment method, Gruber regression model is selected as the empirical research method in this paper. The empirical find that the convergence of the funds’investments in the big-grow style, style change is serious, and positively correlated with market volatility. At the same time, we also find that fund style changes cannot bring more than the level of industry profitability.Finally, this paper discusses the factors influencing the fund’s style of change and the convergence, this paper argues that fund investment style drift phenomenon is influenced by the development of Chinese market conditions and investor’s investment ability and fund managers’performance pressure.